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Facts
The assessee, an illiterate lady residing in a village, failed to appear before the AO and comply with notices issued under section 142(1). She claimed that her total income was below the basic exemption limit and she was unaware of online proceedings as she did not have an email ID or registered PAN. The AO levied a penalty under section 272A(1)(d) for non-compliance.
Held
The Tribunal noted that the notices were sent to an email ID not belonging to the assessee. Considering the assessee's illiteracy and lack of online presence, the Tribunal directed the AO to delete the penalty of Rs. 10,000/- for non-compliance with notices under section 142(1).
Key Issues
Whether the penalty levied under section 272A(1)(d) for non-compliance with notices under section 142(1) is sustainable when the assessee is illiterate and unaware of online proceedings?
Sections Cited
272A(1)(d), 142(1), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’: NEW DELHI
O R D E R
PER MANISH AGARWAL, AM:
This appeal is filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [‘Ld. CIT(A)’ in short], in Appeal No. NFAC/2018-19/10397076 dated 30.09.2025 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’ in short) for Asst. Year 2019-20.
None appeared on behalf of the assessee.
On the other hand, the Ld. SR. DR supports the order of the Ld. CIT(A) and submits that assessee has not made compliance to the statutory notice issued u/s 142(1) of the Act before the AO, therefore, he is liable to penalty u/s 272A(1)(d) of the Act. He thus prayed for the confirmation of the penalty levied u/s 272A(1)(d) of the Act.
Heard the Ld. Sr. DR and perused the materials available on record. It is true that assessee has not appeared before the AO and failed to make compliance on two occasions, however, it was submitted by the assessee before Ld. CIT(A) that she is residing in Village –Dariapur Rajdev Chokuni-Sambhai and is illiterate and since her total income is below the maximum amount of basic exemption limit, she was not obliged to file the return of income. The notices issued by the AO through online mode, however as the assessee neither have any mail id nor registered her PAN and never visited the online portal thus was not aware of the pending assessment proceeding, therefore, even the assessment order was passed ex-parte. Under these facts, the assessee prayed for the deletion of the penalty before the Ld. CIT(A) who after considering the submissions made, deleted the penalty of Rs.10,000/- and confirmed the penalty of Rs.10,000/- u/s 272A(1)(d) of the Act for non-compliance of the statutory notices.
It is further observed that the AO his served the notices though mail-ID sachin00464@gmail.com, however such mail-ID was not belonged to assessee as according to the assessee her PAN was never registered online portal. In view of these facts, we direct the AO to delete the penalty levied of Rs.10,000/- for non- compliance of the notices u/s 142(1) of the Act. Both the grounds of appeal
are thus allowed.